Audit finds Mountain State financial aid problems

July 13, 2012

CHARLESTON, W.Va. (AP) - An audit of Mountain State University's finances has found problems with the private Beckley-based school's handling of state financial aid for students.

The Charleston Gazette (http://bit.ly/LUdOno ) obtained the audit by the Higher Education Policy Commission on Thursday. The newspaper says the audit, which examined Mountain State's financial aid records from 2010 to 2012, found that more than $50,000 in state financial aid was never paid to students.

"The records showed that MSU gave the money to the students, but they hadn't," Brian Weingart, senior director of financial aid for the Higher Education Policy Commission, told the newspaper. "We don't know if those students were enrolled at the institution."

The audit also found that Mountain State gave six students more money than the state had allocated in 2010.

Mountain State has reimbursed more than $44,000 to the commission for financial aid that wasn't disbursed to students.

Weingart, who worked on the audit, attributed the problems to the financial aid office directors' lack of experience.

A new financial aid instructor has since been hired to head the office.

On Tuesday, the Higher Learning Commission withdrew Mountain State's general accreditation. The regional accrediting body said Mountain State does not meet its criteria for leadership, resources, planning and oversight.

University officials said they will appeal the commission's decision to withdraw the accreditation.

Three students sued the university on Wednesday in Kanawha County Circuit Court over the school's revoked accreditation, saying it renders their degrees worthless.